a) Some of the dangers/risks might include:
- Cultural differences -British and American businesses may not be aware of the norms and cultures in India. For example, the clothing range from M&S must be adjusted to suit climate and local tastes.
- Much of India's population still go through from mass poverty; this will limit the amount of consumer spending in the economy.
- Developing countries will lack the communications and infrastructure networks that Western multinationals are used to.
- Legislation is likely to be another possible barrier. Apart from dissimilar legal systems overseas, laws tend to be rather more lax and this can create all sorts of organizational problems.
Any two relevant factors, explained in context, are essential for maximum marks.
b) A little of the opportunities might include:
- Deregulation in India will make execution of business easier
- The huge probable increase in sales, due to the large customer base in India, can lead to enhanced profits
- India's impressive economic growth means that there is likely to be improved demand for foreign imports
- Businesses in the retail, aviation and tourism industries are likely to boom; thereby generating opportunities for related business sectors
- The huge English-speaking community and experienced labour force also present many opportunities for Western multinationals